The movie was considered a twist on horror films as it reimagined classic monsters unleashed in a then-modern day 1980s setting, while it makes a barb at incessant horror sequels during a point where a "film within a film" is questioned about how many times a serial killer can come back from the grave.

The film did not perform well at the box office when it was first released. Having been made on an estimated budget of $12,000,000, the film only earned $4,000,000
in the United States.

The Monster Squad was rated PG-13 by the Motion Picture Association of America.